How much should I charge to haul grain locally?

Not wanting to rain put a I wet blanket on this but off harvest rates tend to be very low. I have a very good relationship with one elevator and can get them upto about $1.70/mile, RT miles, on an average of 870 bu corn per load. The rate is set by the bushel in most cases so you just need to figure your miles, what you want per mile and do the per bushel math.

My feeling is it is too low. I will help him out at times when he gets in bind but would never ask one of my drivers to do this at these rates. (I know, never do a favor but haul a lot of loads at very solid rates for them and plenty other business with brokers that I want).

I would never look at hopper work for year round income. Get a van or flatbed and keep the truck moving that way. This is actually my business model. Keeping farm trucks moving during off season with other work.

Look around at suppliers and you will be surprised at how many suppliers need vans on a year round basis. Then leverage your relationship as a customer to get some of those loads.

 

I'm going to assume you're running on private tags, without commercial authority. If that's the case, hauling for hire, no matter who for, is a big no no. You definitely won't make any friends with the for hire grain haulers in the area, and most likely will be reported once it gets out what you're doing.

Now, if my assumption was wrong, and you've got commercial authority, then $0.27/bu. would be a fair rate. You wouldn't be gouging the guy, and you'd make a few $$ for your time. 99% of the time, grain pays by the bushel. The time you spend waiting in line should be reflected in your rate.

 

What you say is now "free and clear" you may want to rethink, as your maintenance and operating costs have changed from the straight truck.

 

That's great, but I'm guessing you probably don't grow your own tires, oil, u-joints, and who knows what else!

 

If he agrees to 2.50/mile then I'd say it is fair. You will be able to cover fuel and maintance and you will also be helping a fellow friend. As for the legality of it I dot really see how it can hurt. If DOT was to stop you, just tell them it is corn from your own field. The kernels do not have serial numbers lol!!!

 

farm tags make dot moot, we do it at home all the time easy way figure your cost per hr multiply by 2 that's what you charge, figure all cost, wear and tear etc, that's how we do it, if they want a mile price/bushel just do a little more math